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share. Today, you sold all of your shares for $22.20 a share. What is your
total dollar return on this investment?
Question 16 (Another Set)
Suppose a stock had an initial price of $54 per share, paid a dividend of
$1.30 per share during the year, and had an ending share price of $64.
Compute the percentage total return. (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
17.
You’ve observed the following returns on SkyNet Data Corporation’s stock
over the past five years: 14 percent, –7 percent, 17 percent, 15 percent,
and 10 percent. Suppose the average inflation rate over this period was 1.4
percent, and the average T-bill rate over the period was 5.1 percent.
a.
What was the average real return on the stock? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
b.
What was the average nominal risk premium on the stock? (Do not
round intermediate calculations and enter your answer as a percent
rounded to 1 decimal place, e.g., 32.1.)
Question 17 (another Set)